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European Union Adopts New Sanctions Package Against Russia

Republic of Estonia - Ministry of Foreign Affairs

18.07.2025 | 09:51

Today, on 18 July, the European Union approved its 18th sanctions package aimed at increasing pressure on Russia and preventing the financing of its war machine. One of the central measures is lowering the price cap on Russian oil from $60 to $47.60 per barrel. From now on, the price cap will be reviewed every six months to ensure it remains 15% below the average market price.

According to Foreign Minister Margus Tsahkna, the new sanctions package demonstrates that Europe remains tireless and resolute. "The European Union is deliberately and consistently raising the cost of aggression for Russia. Every euro Russia earns from oil sales helps fund its bloodshed in Ukraine. Our goal is to shut off those financial lifelines."

"A price cap of $47.60 is not merely a technical limit—it is a political blow to Russia's war machine. We are forcing Putin to sell oil below market price so that he feels more acutely what international isolation means," Tsahkna emphasized. "I call on all democratic nations to join this price cap. It is our moral and strategic obligation."

"The sanctions also include a ban on transactions related to the Nord Stream 1 and 2 gas pipelines, meaning all goods and services linked to the construction, maintenance, operation, or management of these pipelines are now prohibited," said Minister Tsahkna, adding that the goal is to completely prevent the reopening of these pipelines.

An import ban was also introduced for refined petroleum products made from Russian crude oil in third countries.

More than 100 additional ships were added to the EU sanctions list, all of which are now banned from entering EU ports and receiving services. In total, the EU has sanctioned nearly 450 vessels, primarily involved in transporting Russian oil.

In the financial sector, the previous measure of disconnecting Russian banks from SWIFT was replaced with a full transaction ban, and more Russian banks have been added to the sanctions list. Additional trade restrictions were imposed on goods and technologies used in Russia's military industry. Measures against Belarus have also been tightened.

"Russia must understand that there is no place in the international arena for a country that flagrantly violates international law and attacks sovereign nations," said Tsahkna. "We will not stop until Russia is fully held accountable, withdraws from Ukraine, and compensates for the destruction it has caused. This is not just a statement—it is a promise."

Further individuals and entities were added to the sanctions list, including companies in Russia's military-industrial complex, the captain of the tanker Jaguar, and companies associated with the vessel. Sanctions were also imposed on several third-country companies that facilitate the shadow fleet's operations or supply Russia's military industry.

Tsahkna confirmed that work on the next, 19th sanctions package has already begun. "We will not settle for halfway measures. Every new package strengthens our message: Ukraine is not alone, and Russia will not go unpunished."